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Construction vs Owner Builder Loans
There is nothing quite like moving into a home that you have built. The colours, the flooring, the layout are exactly what you want.
You may find a builder that you like. You could also know or be really handy yourself and want to have a go without a registered builder. If you use a registered builder it is referred to as a Construction Loan, if you do it yourself it is referred to as an Owner Builder Loan.
Construction Loans
A Construction Loan can be taken out with most lenders. You can usually borrow up to 95% of both land and cost to construct. This loan works in stages, usually around five. At the completion of each stage the builder invoices the lender, and the lender pays them directly. As each stage is paid by the lender you then make repayments on the balance.
Owner Builder Loan
An Owner Builder Loan is much harder to source. The main reason for this is there are not too many lenders that will lend money for this. The lenders that do often have strict rules on land size, location, and the percentage you can borrow. Some only let you borrow 50% of the ‘cost’. Therefore you would need sufficient equity in the land, or a large sum of money.
What we can offer
At Lending Hand Finance we are always trying to keep up with any changes in lender offerings. Last year we added ‘Owner Builder Finance’ to our list. They may lend you up to 80% of ‘end value’, in other words 100% of cost (depending on what the value of the project is at the end).
It is wise to speak to us even before you look into house layouts or materials. You may be surprised sometimes at the restrictions when building both as Construction / Owner Builder.
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Did You Know?
We can source lenders and loans specific to your needs, whether you're an investor or building your own home, we can lend a hand.
Contact Lending Hand Finance on
1300 850 545 or
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